Internet gaming spurs regulatory dilemmas, G2E panelists say

While the American Gaming Association is calling for regulatory reforms for the industry, rapidly changing technology and iGaming opportunities will present a new batch of issues for regulators to consider when they set public policy and interpret legislative intent.

For example, what happens when a casino company develops a social game on Facebook, like “Farmville," and its rewards can be collected in a brick-and-mortar casino? Doesn’t that somehow tie in to Internet gambling?

And what happens when a casino company delivers a promotions-filled email blast to its database and a copy of the promotion lands in the box of a self-excluded customer? Should there be consequences to the company?

Don’t even get started on whether fantasy football is a form of gambling.

A diverse panel of industry experts tackled regulatory issues in a Wednesday session at the Global Gaming Expo, which wrapped up today at the Sands Expo and Convention Center.

Panelist Gregg Solomon, CEO of Detroit’s MotorCity Casino, said the intersection of social media and casino gambling is presenting new challenges for regulators. Solomon explained that his property acquired a “Lord of the Rings” slot machine, manufactured by WMS Gaming, which enables players to collect medals that unlock a character’s ability to advance to new levels in a game and give a player greater rewards.

New versions of the device allow a player to access the same character through social media games. The character then can win better awards or become stronger when the player returns to play at the casino.

The problem is that regulators have no oversight of the social media play.

On a different topic, Solomon expressed skepticism that regulators could ever be assured that companies participating in Internet gambling would be able to prove online players are not underage or within a state that approves play.

“How can you be absolutely certain that that person out there is who they say they are and are playing where they say they are?” he said.

In earlier G2E sessions, some executives said they were convinced that technology would enable them to qualify players geographically or by age. The Gaming Association also believes that’s possible.

Solomon said individuals could mask their physical locations. As for underage play, no amount of biometric proofs can assure company executives that an irresponsible parent hasn’t enabled an underage player from gambling, he said.

“After all, we’re talking about the same people who leave their kids in a car when it’s 110 degrees,” Soloman said.

The first time the media discover an underage player has gambled, the industry — and possibly lawmakers — will be criticized.

“Imagine if it’s a 12-year-old who racks up a $20,000 credit card bill and what if it’s the son or daughter of a U.S. congressman,” said panel moderator Lloyd Levenson, CEO of the Cooper Levenson law firm.

None of the panelists wanted to tackle a question about whether fantasy football constituted a gambling game, although one member suggested that compiling statistical scores based on National Football League players’ performance in their weekly games would be considered a game of skill, not chance, and therefore legal.

But panelists concurred that regulators are going to be faced with some new challenges.

“‘Close is good enough’ isn’t acceptable for land-based casinos,” Solomon said. “It certainly isn’t going to be good enough for Internet gambling.”